Results 1 to 4 of 4

Thread: KIA Extended Warranty - yeah or nay

  1. #1
    Becoming a C2E Power Poster
    Join Date
    Sep 2008
    Location
    Edmonton
    Posts
    381

    Default KIA Extended Warranty - yeah or nay

    Hi,
    I was looking at the new 2017 KIA's. Their warranty is 5yrs/ 100,000KM - kinda standard. Then they offer an additional warranty for another 5 years after the initial manufacturer warranty ( from the 5th to the 10th year).
    It covers a bunch of things, seemed fairly reasonable. The cost is approx. $3,000, and if you do not use it, you get some of it back as a store credit.

    I usually decline all those additional warranties for electronics, but for a vehicle is seems not too bad. You pay in today's dollars for coverage that could fix items in 5+ years which will probably be more expensive by then.

    On the other hand, I suspect these additional warranties are a bit like gambling, and the house ( dealership ) wins in the long run. I'm guessing the things they cover are very unlikely to fail, or if they do, there are some limitations in there. I honestly cannot see a scenario where you bring a vehicle to a dealer after the 5 yr warranty has expired and walk out without paying anything.

  2. #2
    C2E Continued Contributor
    Join Date
    Mar 2014
    Posts
    1,681

    Default

    Quote Originally Posted by rupikhalon001 View Post
    Hi,
    I was looking at the new 2017 KIA's. Their warranty is 5yrs/ 100,000KM - kinda standard. Then they offer an additional warranty for another 5 years after the initial manufacturer warranty ( from the 5th to the 10th year).
    It covers a bunch of things, seemed fairly reasonable. The cost is approx. $3,000, and if you do not use it, you get some of it back as a store credit.

    I usually decline all those additional warranties for electronics, but for a vehicle is seems not too bad. You pay in today's dollars for coverage that could fix items in 5+ years which will probably be more expensive by then.

    On the other hand, I suspect these additional warranties are a bit like gambling, and the house ( dealership ) wins in the long run. I'm guessing the things they cover are very unlikely to fail, or if they do, there are some limitations in there. I honestly cannot see a scenario where you bring a vehicle to a dealer after the 5 yr warranty has expired and walk out without paying anything.
    Pretty much every manufacturer offers extended warranty on new vehicles for the same price give or take depending on term and mileage that one chooses.

    Buy something 2-3 years used that is from someone's lease and save money. The 3k you invest in the warranty may never be used. Even the portion they "give back" isn't a guarantee if you go somewhere else 10 years down the road. Save the 3k in a bank account/investment and use it on a repair that you actually need down the road.

  3. #3

    Default

    Had an extended warranty on a Hyundai. Never even got to use it. Some drunk driver totalled our vehicle while it was legally parked. Never got compensated for the cost of the extended warranty either. Nor did Hyundai transfer the unused warranty (entirely unused, it didn't even kick in yet) to the newer Hyundai vehicle.

    Don't bother, a lot of unexpected things can occur. I did research and Edmonton area is infamous for drivers that hit parked vehicles.

    The advice above is good. I always try to buy a vehicle that is just broken in at anywhere up to say 35K. That way you get solid warranty left and you have a record of how the vehicle has performed.
    Last edited by Replacement; 23-08-2017 at 09:11 AM.
    "if god exists and he allowed that to happen, then its better that he doesn't exist"

  4. #4
    C2E SME
    Join Date
    Dec 2009
    Location
    Downtown Edmonton
    Posts
    10,460

    Default

    Their warranty is 5yrs/ 100,000KM - kinda standard.


    Actually, 3/60,000 had been the standard for a long time. The Korean manufacturers went up to 5/100,000 because their vehicles initially had such bad reputations for reliability. These days they're some of the most reliable, but they've kept the longer warranty, and some other manufacturers have followed them or met in the middle with 4/80,000.

    With warranties or insurance, if you can afford to "self-insure", then generally you're better off doing that. Car manufacturers and insurance companies aren't doing it out of the goodness in their hearts, they're going to make a profit on average on those policies. However, luck/chance can intervene and you end up with a huge bill for a transmission or something. But that kind of thing is becoming so rare with vehicles these days.

    Electronics extended warranties are horrendous, and are almost 100% profit for the stores that sell them. Never, ever pay for one.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •